The American Iron and Steel Institute (AISI), on behalf
of its United States member companies, submitted comments
to the Office of the United States Trade Representative’s
Trade Policy Staff Committee (TPSC) documenting China’s
non-compliance with the commitments it made upon its
accession to the World Trade Organization (WTO) and called
for “decisive action.” Of main concern, AISI pointed
out that China’s non-compliance with its WTO obligations
remains a severe and growing problem for American steel
producers and other domestic manufacturers.

“In each submission (to the TPSC – 2004-2008), AISI has
documented how China has used subsidies and other forms
of government support to build an enormous steel industry
in violation of market principles and China’s WTO commitments,”
read AISI’s comments.

AISI went on to point out that:

China’s massive government-directed steel industry
continues to grow;

Chinese steel exports continue to injure the American
steel industry;

Chinese steel production practices cause environmental
damage;

Decisive action against trade-distorting Chinese
steel policies should be taken.

In addition, AISI noted that its submission does not
attempt to identify and discuss every outstanding issue
with respect to China’s WTO compliance; however, there
are several issues of particular importance to United
States steel producers. These issues include: subsides;
state-owned enterprises; government policies distorting
the market for raw materials; currency manipulation;
China’s continued treatment as a non-market economy;
enforcement of the China-specific safeguard provision
(Section 421); product safety issues; and intellectual
property rights.

The comments highlight the United States Administration’s
need to address the fact that “today, China is on pace
to produce over 500 million MT of crude steel and has
captured 48.5 percent of global market share. These facts
show that the United States’ approach has not been effective
in bringing China into compliance. Rather, China is continuing
to use trade-distorting measures to build a massive steel
industry that is injuring the American steel industry,
the American economy, and the environment.”